Schlumberger to win unconditional EU approval for Cameron deal

The acquisition will enable Schlumberger to offer a broader range of products at lower prices to oil companies, which are slashing spending.

Updated: Jan 25, 2016, 05.08 PM IST

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BRUSSELS: World No. 1 oilfield services company Schlumberger is set to gain unconditional EU approval for its $14.8 billion bid for equipment maker Cameron International Corp, two people familiar with the matter said on Monday.

The acquisition will enable Schlumberger to offer a broader range of products at lower prices to oil companies, which are slashing spending in response to falling oil prices, and boost its market share.

Antitrust experts have said the companies offer complementary product lines, meaning the deal would draw less regulatory scrutiny.

This is the second-biggest tie-up in the energy services after Halliburton's proposed offer of about $35 billion for Baker Hughes, the subject of a full-scale investigation by the Commission because of concerns it could push up prices for oil and gas exploration in Europe.

European Commission spokesman Ricardo Cardoso declined to comment. Schlumberger and Cameron did not immediately reply to emails for comment. The EU competition enforcer is scheduled to decide on the deal by Feb. 5.

U.S. antitrust regulators cleared the deal without conditions in November last year. The companies expect to close the merger in the first quarter.

Schlumberger last week said it would cut 10,000 jobs in the fourth quarter amid a prolonged oil price slump.